American Financial Group, Inc. Enters Into Transaction with Atlas Financial Holdings, Inc. for its Paratransit Business
June 10 2019 - 9:00AM
Business Wire
American Financial Group, Inc. (NYSE: AFG) today announced that
its commercial transportation specialist, National Interstate, has
entered into an agreement with Atlas Financial Holdings, Inc. (AFH)
to become the exclusive underwriter of AFH’s paratransit book of
business. The transaction is effective June 10, 2019 and National
Interstate expects to begin issuing policies in the third quarter
of 2019. National Interstate estimates that the majority of AFH’s
$110 million paratransit business will be eligible for quotation
under this arrangement over the first 12 months following inception
of the agreement.
Under the terms of the agreement, an AFH subsidiary will act as
an underwriting manager for National Interstate for at least 12
months following the transaction, after which time National
Interstate is entitled to acquire the renewal rights for the
business held by AFH and certain of its subsidiaries.
In addition, AFG has been granted a five-year warrant to acquire
19.9% of AFH’s common stock outstanding at an exercise price of
$0.69 per share, which represents the average closing price per
share for AFH’s common stock over the preceding five trading
days.
Carl H. Lindner III, Co-CEO of American Financial Group,
commented, “Passenger transportation is a business we know well,
and we are well-positioned to act on opportunities in a market that
remains in a correction mode. This paratransit book of business is
a great strategic fit for AFG. It complements National Interstate’s
existing paratransit book, and will allow us to grow our footprint
within an existing specialty transportation niche that has
performed very well for us. We look forward to working with Atlas
and its agents to provide a smooth transition for
policyholders.”
About American Financial
Group, Inc.
American Financial Group is an insurance holding company, based
in Cincinnati, Ohio with assets over $65 billion. Through the
operations of Great American Insurance Group, AFG is engaged
primarily in property and casualty insurance, focusing on
specialized commercial products for businesses, and in the sale of
traditional fixed, fixed-indexed and variable-indexed annuities in
the retail, financial institutions, broker-dealer and registered
investment advisor markets. Great American Insurance Group’s roots
go back to 1872 with the founding of its flagship company, Great
American Insurance Company.
Forward Looking
Statements
This press release contains certain statements that may be
deemed to be "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. All statements in this press
release not dealing with historical results are forward-looking and
are based on estimates, assumptions and projections. Examples of
such forward-looking statements include statements relating to: the
Company's expectations concerning market and other conditions and
their effect on future premiums, revenues, earnings, investment
activities and the amount and timing of share repurchases;
recoverability of asset values; expected losses and the adequacy of
reserves for asbestos, environmental pollution and mass tort
claims; rate changes; and improved loss experience.
Actual results and/or financial condition could differ
materially from those contained in or implied by such
forward-looking statements for a variety of reasons including, but
not limited to: changes in financial, political and economic
conditions, including changes in interest and inflation rates,
currency fluctuations and extended economic recessions or
expansions in the U.S. and/or abroad; performance of securities
markets, including the cost of equity index options; new
legislation or declines in credit quality or credit ratings that
could have a material impact on the valuation of securities in
AFG’s investment portfolio; the availability of capital; changes in
insurance law or regulation, including changes in statutory
accounting rules and changes in regulation of the Lloyd’s market,
including modifications to the establishment of capital
requirements for and approval of business plans for syndicate
participation; changes in the legal environment affecting AFG or
its customers; tax law and accounting changes, including the impact
of recent changes in U.S. corporate tax law; levels of natural
catastrophes and severe weather, terrorist activities (including
any nuclear, biological, chemical or radiological events),
incidents of war or losses resulting from civil unrest and other
major losses; disruption caused by cyber-attacks or other
technology breaches or failures by AFG or its business partners and
service providers, which could negatively impact AFG’s business
and/or expose AFG to litigation; development of insurance loss
reserves and establishment of other reserves, particularly with
respect to amounts associated with asbestos and environmental
claims; availability of reinsurance and ability of reinsurers to
pay their obligations; trends in persistency and mortality;
competitive pressures; the ability to obtain adequate rates and
policy terms; changes in AFG’s credit ratings or the financial
strength ratings assigned by major ratings agencies to AFG’s
operating subsidiaries; the impact of the conditions in the
international financial markets and the global economy relating to
AFG’s international operations; and other factors identified in
AFG’s filings with the Securities and Exchange Commission.
The forward-looking statements herein are made only as of the
date of this press release. The Company assumes no obligation to
publicly update any forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20190610005387/en/
Diane P. Weidner, IRCAsst. Vice President - Investor
Relations513-369-5713
Websites:www.AFGinc.comwww.GreatAmericanInsuranceGroup.com
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